[Cryptography] Digital currencies

Tom Mitchell mitch at niftyegg.com
Wed Jun 22 13:22:40 EDT 2016

On Fri, Jun 17, 2016 at 3:42 PM, mok-kong shen <mok-kong.shen at t-online.de>

> How far advanced are the developments in digital currencies?
> Would they ever be able to replace the classical currencies?

For me the answer has to do with storage including long term storage
and volatility.   Storage media has issues beyond a couple decades
with some exceptions.

If I was to put a chunk of my life savings on a DVD in a box of Audio and
DVDs it is likely to get lost.  i.e. currency has visible denominations
and visible certifications including validations (watermarks, special inks
other anti-counterfeit measures).

Bank to bank transfers are digital today but those transfers are
proxy for ledger entries that can be audited in existing ways as
covered by law.

Auditing banks is difficult today... digital currencies seem to hobble
audit at too many levels for me to trust a bank.   Bit rot or key theft
seems to trigger absolute losses.

Digital currencies require infrastructure and devices that classical
currencies do not need.  The price of a smartphone in itself is
not justified by a cup of coffee transaction.  Failing to charge a
device or theft of a device is a full stop difficulty....

Digital currencies will find places to be used but replace not yet.

  T o m    M i t c h e l l
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